Cash Flow Modelling Explained: How to Know Whether Your Financial Plan Will Hold Up

Cash flow modelling is one of the tools financial planners use to answer exactly these questions. In this episode of Hoxton Life, Financial Adviser Zavio D’Ercole joins Hoxton Wealth CEO Chris Ball to explain how it works and why it is such an important part of building a financial plan you can actually trust.

What the episode covers:

1. What cash flow modelling involves - from assessing your current position to forecasting future income, expenditure and assets
2. Retirement planning - understanding when you could retire, how much you can spend and whether your money is likely to last
3. Stress-testing your plan - against different investment returns, inflation, market downturns and life expectancy
4. Major life decisions - gifting to children, inheritance tax planning and selling a business
5. Identifying shortfalls early - and understanding when changes to saving, spending or retirement plans may be needed
6. Keeping your plan up to date - as circumstances, priorities and goals evolve over time

Zavio also shares a real client example where an unexpected payment from a business sale changed everything, and how updating the cash flow model revealed that retirement was possible far sooner than originally planned.

The episode also covers WealthFlow, available in the Hoxton Wealth app, which allows clients to visualise different scenarios and understand the potential impact of their decisions in real time.